Cardano blockchain founder Charles Hoskinson explained the basic concepts of cryptocurrency while opposing central bank digital currencies (CBDCs)..
Hoskinson made this statement in a social media post on May 11, expressing his views on the upcoming U.S. presidential election.
Hoskinson explains why cryptocurrencies matter
According to Hoskinson, the basic idea of cryptocurrency is to establish a new social contract. He explained that these agreements will make governments, corporations, and other authorities accountable to their citizens. He urged the industry to focus on advancing this cause rather than engaging in arbitrary debates about taxes and regulations.
Hoskinson warned that those who oppose cryptocurrency expansion may unwittingly support the concentration of power in the hands of a few. He warned that if the cryptocurrency industry fails to seize the opportunity, CBDC could be the only viable alternative.
As a result, these CBDCs could potentially expand financial surveillance and citizen control, threatening user privacy and autonomy. Hoskinson added that governments could use CBDCs to manipulate information flows and hinder social mobility.
“Cryptocurrency gives us back our voice, our financial freedom, and our shared humanity. Any politician who wants to take that away from us is dangerous,” Hoskinson said. Advert.
Read more: How to Buy Cardano (ADA) and Everything You Need to Know
Cardano’s founders’ views on CBDCs reflect concerns shared by privacy advocates who see CBDCs as potential tools for widespread government surveillance and economic manipulation. Author Robert Kiyosaki, famous for ‘Rich Dad, Poor Dad’, recently warned that central banks are using CBDC to infringe on individuals’ privacy.
“be careful. The banking crisis gets worse. The threat of war increases. Central banks will push for a central bank digital currency, CBDC, to SPY us. I am buying more bitcoin and silver,” Kiyosaki said.
Despite these concerns, proponents argue that CBDCs can increase transaction efficiency and strengthen defenses against digital transaction fraud. Deutsche Bundesbank President Joachim Nagel emphasized the urgent need for central banks to reassess their business models and quickly embrace CBDCs.
CBDC is a blockchain-based iteration of government-issued currency. Facilitates faster settlement of fiat transactions for central banks, retail banks and consumers compared to traditional banking infrastructure.
In particular, the overwhelming majority of countries and monetary unions (134 countries in total), accounting for 98% of global GDP, are considering introducing CBDCs, a significant increase compared to the 35 countries considering CBDCs in May 2020. Currently, 68 countries are actively participating in the advanced stages. CBDC exploration, including development, pilot programs or preparation for launch.
Read more: Digital Rupee (e-rupee): A comprehensive guide to India’s CBDC
“Nineteen of the Group of 20 (G20) countries are currently at advanced stages of CBDC development. Among them, 11 countries are already in the pilot phase. These include Brazil, Japan, India, Australia, South Korea, South Africa, Russia, and Turkey,” the Atlantic Council wrote.
disclaimer
In compliance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. These news articles aim to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to check the facts and consult with experts. Our Terms of Use, Privacy Policy and Disclaimer have been updated.